Denny's Daily Zinger: Investor Creates Bogus PAC
Last week, a story broke about the Senate Banking Committee looking to phase out Fannie Mae and Freddie Mac, those government-sponsored agencies that guarantee home mortgages.
Fannie and Freddie backed the home loans of millions of borrowers with lousy credit histories. The result: the $817 billion bailout by the federal government back in 2008.
Enter Bruce Berkowitz
Berkowitz of the Fairholme Capital Management Mutual Fund has big bucks invested in Fannie and Freddie. If the two disappear, so will Fairholme's money.
So Berkowitz has financed a coalition of the frightened.
Its mission: To keep Fannie and Freddie alive. The website—United for American Home Ownership—went live last Tuesday, along with full-page ads in The New York Times and The Wall Street Journal.
The public is made to believe this kumbaya political action committee is about Chevrolets, motherhood, apple pie and love of home ownership and family.
However, no mention is made anywhere of the lurking Bruce Berkowitz and Fairholme Capltal—desperate to cover their asses.
Particularly galling is the paragraph:
United for American Homeownership (UAH) is calling on Congress to help the American economy continue its comeback—to keep America's housing market in the hands of professionals, not politicians and the big banks. [Boldface mine.]
Keep it "in the hands of the professionals" who damn near destroyed the world economy?
I may barf.
Takeaways to Consider
- United for American Homeownership is a big fat lie.
- "Nobody ever went broke underestimating the intelligence of the American public." —H. L. Mencken
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